Earnings Per Share

9 Months Ended

Sep. 30, 2012

The Company follows ASC 260, Earnings Per Share, in calculating earnings per share. Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of shares outstanding during the period. The holders of unvested restricted stock awards do not have nonforfeitable rights to dividends or dividend equivalents and therefore, such unvested awards do not qualify as participating securities and are excluded from the basic earnings per share calculation. Diluted earnings per share includes the determinants of basic net income per share and, in addition, gives effect to the potential dilution that would occur if securities or other contracts to issue common stock are exercised, vested or converted into common stock unless they are anti-dilutive.

A reconciliation of the numerators and denominators of basic earnings per share and diluted earnings per share for the three and nine months ended September 30, 2012 and 2011 are shown in the following table (in thousands, except per share data):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Numerator
Net income	$	4,053	$	7,482	$	11,427	$	20,665
Denominator
Denominator for basic earnings per share:
Weighted average common shares outstanding	24,773		23,752		24,400		23,579
Denominator for diluted earnings per share:
Dilutive potential common shares:
Stock options	656		610		636		822
Restricted stock awards	253		129		256		282
Weighted average common shares outstanding with assumed conversion	25,682		24,491		25,292		24,683
Basic earnings per share	$	0.16	$	0.32	$	0.47	$	0.88
Diluted earnings per share	$	0.16	$	0.31	$	0.45	$	0.84
Total number of anti-dilutive shares of stock options and nonvested stock excluded from calculation of diluted earnings per share	378		1,635		469		347

- Definition

The entire disclosure for earnings per share.

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